Online auctions and Perks
Online auctions is a very broad topic because it
does not focus on a particular item. Online auctions have grown to produce
large corporations such as eBay, Yahoo, and Quibids. This blog will cover the types
as well as logistics of online auctions. Online auction is a very profitable
way to sell and obtain goods at a competitive price. It is much more convenient
than leasing office space. Additionally, online auctions expose the product or
service to a global marketplace instead of being confined to a local market. To
increase profit, sellers could potentially get involved in fraudulent activity.
Such activities include receiving money from buyers and not sending product or sending
a less desirable item. To combat this issue software has been implemented by
organizations to identify users practicing collusion. Taken this into account corporations
have introduced an advanced system to prevent crimes e.g. shill bidding. Shill
bidding is a seller that has someone bid on their item to increase price.
How does an online auction work?
An online auction begins when a seller lists an
item and sets a specific amount of time the item must be sold. Next, a buyer
may submit a reasonable price for the item. After time runs out the buyer with
the highest bid wins the auction and is required to submit payment to the seller.
When payment is received the seller sends the item.
Some questions that will be answered in future
blogs are the types of auctions that are available to the consumer. The pros
and cons businesses encounter through online auction sites. How corporations
use software to manage the different processes of the establishment as well as
prevent fraudulent activity. If there are any more questions that needs to be
addressed feel free to post them in the comment section of the blog.
I think it would be interesting to see how people auction things such as services as well.
ReplyDeleteAaron I believe we will be answering how services are auctioned in the next blog.
DeleteAaron services are auctioned off in the very same way tangible goods are auctioned off. It is possible to use any of the methods we have discussed in the second blog.
DeleteFor example a English auction would be best for a person who is auctioning their service to provide piano lessons.
A Dutch auction would be appropriate for contractors bidding on an assignment. Contractors must have a lower bid to win the auction.
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ReplyDeletecan someone tell me what is auction and what is difference in English and dutch?
ReplyDeleteYou know, as interesting as auctions are to me, I can never figure out how to use them. I think its pretty neat that you can possibly get a product/service at a bargained price!
ReplyDeleteI have always wondered, if you have won the bid at $.02 for a $50 item, will you be given the item or is there a minimum amount the seller gets to set the item for?
ReplyDeleteI wonder if there will ever be a competitor to ebay with lower selling fees.
ReplyDeleteI am very familiar with the technology behind eBay but I remain skeptical about penny auctions, you spend money with no guarantee of winning. It reminds me of gambling! However, if technology is in place to prevent a computer from outbidding customers. then I believe this can be a very profitable way to sell products.
ReplyDelete